Shares of Generac Holdings Inc (NYSE: GNRC) continued their rally on Monday, gaining about 3.0% as Hurricane Ida caused power outages in Louisiana, leading to an increase in demand. The stock had already started pushing up in anticipation of the storm and has climbed by more than 15% since August 17th.
CEO Aaron Jagdfeld’s comments on CNBC’s “Squawk on the Street”
CEO Aaron Jagdfeld expects the power outages to be a “very long-term event”. Acknowledging a rise in demand, he said on CNBC’s “Squawk on the Street”:
“We’re in full storm mode here. We’ve been shipping products since late last week when we figured where the storm was headed based on the forecasts. We have a lot of product in the region, and more is headed there because it looks like these outages will be pretty extended. These are the large transmission lines that bring power into New Orleans, and about eight parishes are down.”
The $28 billion company now has a price to earnings ratio of 55.80.
Impact on the company’s previous guidance for 2021
According to the chief executive, demand from a storm like this is expected to keep strong up to twelve months after it has passed. Jagdfeld also agreed that the increase in demand could be “incremental” to the company’s previous guidance for 2021.
“We’ve been running flat out. We’ve added capacity, we’re adding more capacity next year. We will get a little bit of a bump this year from this event obviously, with some of the smaller products like portable generators that we’ve shipped over a hundred truckloads of already in the last few days,” he added.
As per Jagdfeld, weather extremities and the Coronavirus pandemic are increasingly making backup power a priority for people as well as businesses. Generac reported its Q2 financial results last month.
The post Generac CEO on Hurricane Ida: “the power outages could be a long-term event” appeared first on Invezz.
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Wajeeh Khan
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